Capital Employed

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DEFINITION of 'Capital Employed'

1. The total amount of capital used for the acquisition of profits.

2. The value of all the assets employed in a business.

3. Fixed assets plus working capital.

4. Total assets less current liabilities.

INVESTOPEDIA EXPLAINS 'Capital Employed'

This is a term that is frequently used, but very difficult to define because there are so many contexts it can be used in. All definitions generally refer to the investment required for a business to function. By "employing capital" you are making an investment.

Also known as "funds employed".

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